Citi Has Buy Rating On DSW Inc. (DSW)

Citi Investment Research has a Buy rating and a $45 price target on shares of DSW Inc. DSW. In a note to clients, Citi writes, "RVI owns approximately 62% of DSW's outstanding common shares and approximately 93% of the voting power. DSW's float is 14MM shares; RVI retains another 27.9MM class B shares that are not included in the float. We think the 27MM shares are likely to be released into the public float at some point. This might come through a transaction in which DSW purchases the shares and issues them onto the market — or a potential combination in which RVI shareholders are granted a pro-rata share of DSW stock. Other scenarios might apply — but in the end DSW, would have a more liquid float. DSW also mentioned that for the first time they are looking at acquisitions and expects to end the year with $350MM to $400MM in cash and is looking at the best way to use it." Shares of DSW lost 4 cents yesterday to close at $35.09.